The late Charlie Munger once said:
Trump tariffs spell ongoing volatility
The S&P 500 set new records in 20243, leading many to believe that some exposure to US stocks was essential in any allocation to equities in 2025. But that belief has been knocked in the early stages of this year, first by worries about the strength of the AI trade, then by a dramatic shift in US trade policy, among other changes wrought by US President Donald Trump. If the start of the year is anything to go by, the path forward for US equities will likely be filled with more volatility and greater dispersion. Yet it’s also an environment that continues to be attractive for active managers, especially those characterised by strong conviction, deep research and high precision.
Take advantage of US growth and US value opportunities:
High-quality growth businesses trading at a significant discount to intrinsic value.
A value driven, best-in-class portfolio of 30-50 US stocks.
Dynamic sector rotation approach based on Professor Robert Shiller’s method.
Magnificent 7 made up 30% of S&P
At one point in 2024, the Magnificent 7 comprised nearly 30% of the S&P 5004. The concentration of today’s stock market means diversification, analysis, and time-tested investment themes are more important than ever – especially as investors look beyond mega-cap tech stocks and towards new sectors, styles and emerging markets. Additionally, thematic equity investments continue to offer an alternative way to harness disruptive and innovative technologies without the limitations that come with a concentrated sector bet.
Take advantage of broader active equities opportunities:
A core global growth strategy designed to generate alpha.
Multi-thematic strategy investing in international equities.
Invests in smaller companies with longer potential runways of growth.
Two-thirds say uncertainty calls for active
According to our 2025 survey, more than two-thirds of wealth managers say uncertain markets call for active management, and 63% think markets will favour active investments this year5. Clearly, the investment environment we lived in from 2010 to 2020 was abnormal. Looking ahead, ‘back to normal’ is likely to be characterised by stickier inflation, higher rates, and market diversification, providing active portfolio managers with plenty of new opportunities to meet changing investor objectives.
Discover our full range of active equities investment managers:
73% think transitions offer investment opportunities
From the rise of artificial intelligence to the maturing conversations around sustainability, transitions are already underway that will reshape the way we live, work, and do business. As investors seek to navigate this changing environment, understanding the key trends and transitions that are shaping the future will be crucial for making informed decisions and capturing value. Indeed, our survey of wealth managers found 73% believe major transitions such as energy, demographics and governance represent significant investment opportunities for their clients5.
For equities investors, these might include:
- How recent breakthroughs in deep learning, generative AI and foundation models are changing the game when it comes to rates of discovery and prediction.
- Other long-term themes that have not received as much attention as AI, which are trading at lower valuations and could hold just as much investment potential over the next ten years.
- Areas such as global supply chains and water sanitation, as well as opportunities for advancements in obesity drugs and cancer treatments as part of wider innovations in the healthcare sector.
Next decade investing
Read more about the key trends that will continue to define investor thinking over the next ten years.
80% of companies globally are private
Investors can invest in private as well as public equities. Some companies do not issue or trade shares publicly and remain privately owned. Private equity funds buy stakes in private companies and often take a role in running those businesses. They share in any profits from the business and also aim to make a profit by increasing the value of the company over time before selling it on.
While assets under management in private assets still represents less than 10% of all investable assets, and private equity specifically remains a fraction compared to listed equities, more than 80% of companies globally are held in private hands and need financing through private equity6. As a result, the financing of private entrepreneurship will continue to be vital for economic development and innovation.
And individual investors' interest in private equity is continuing to grow. The Eltif 2 label is expected to support the democratisation of private assets in Europe, with the creation of semi-liquid evergreen funds.
Of course, several issues need to be considered carefully. There’s liquidity for one: despite the emergence of semi-liquid funds, these investment strategies remain fundamentally illiquid and therefore not necessarily advisable to everyone directly – except, through pension schemes. Then there’s the cost: private equity products manufactured for private individuals are substantially more expensive than the ones for institutional investors.
However, for those individuals that understand the risks, the benefits of investing in private equity include diversification – providing a way to decorrelate an investment portfolio from the volatility of public markets – and potentially enhanced returns, where private equity has typically outperformed public stock markets over the longer term.
Discover our private equity capabilities:
Access global & diversified private equity opportunities.
Long-term value creation that supports the sustainability of local economic, community and environmental development.
A private equity impact fund accelerating the transition through innovation.
Private Assets
Gain a single point of access to high conviction investment managers that have a deep understanding of private markets.
Featured strategies
The days of investors generating returns off the back of constantly growing markets are in the past. Today’s environment demands a discerning, active approach from equities investors. Our investment managers each have different styles and approaches, yet all are advancing on the same goal – to outperform the wider market over the long term. Explore our featured equities strategies:
Harris Associates US Value Equity
A value driven, best-in-class portfolio of 30-50 US stocks
Loomis Sayles Global Growth Equity
A core global growth strategy designed to generate alpha
Loomis Sayles US Growth Equity
Allocating capital to select high-quality businesses with sustainable growth, trading at a significant discount to intrinsic value
Ossiam Shiller Barclays CAPE® US Sector Value TR
An approach which provides exposure to US equities through a dynamic sector rotation based on the CAPE® ratio developed by Professor Robert Shiller.
Mirova Global Sustainable Equity
The Mirova Global Sustainable Equity strategy is a conviction-based and multi-thematic ESG strategy investing in international equities
Thematics Safety
The Thematics Safety strategy looks to tap into the fast-growing safety and security themes.
Interested in finding out more?
Our equities-focused investment managers
In an uncertain and volatile world, multiple views are surely better than just one. Natixis Investment Manager’s multi-investment manager model provides investors with a multitude of lenses through which to understand markets. And with €364.7 billion7 in equities and a global reach, we provide value, growth, sustainable, and thematic investment options:
Further reading
Equities
Equity investing can still make sense during market highs
There can still be opportunity to invest in equities when markets are near all-time highs, explains Natixis investment strategists.
Equities
How Aziz Hamzaogullari and his team generate long-term alpha
Aziz Hamzaogullari from Loomis Sayles discusses his team’s alpha thesis and AI, sell discipline, and the US election.
Equities
Current drivers of global equity markets
Vaughan Nelson CIO Chris Wallis expects volatility, stronger global growth and favourable conditions for small-medium companies.
References
1 Source: 10 Nuggets of Investing Wisdom From the Late, Great Charlie Munger That Warren Buffett Especially Liked (msn.com)
2 Source: Three reasons to stay invested in volatile times https://www.im.natixis.com/en-intl/insights/portfolio-construction/2023/three-reasons-to-stay-invested-in-volatile-times
3 Source: https://www.visualcapitalist.com/sp-500-annual-returns-since-1874/
4 Source: https://www.morganstanley.com/ideas/magnificent-7-stocks-portfolio-risk
5 Source: 2025 Natixis Wealth Industry Survey, which included 520 investment professionals running investment platforms and managing assets at leading wealth managers in 20 countries
6 Source: Kohlberg Kravis Roberts & Co LP (KKR), Global Macro Trends, 2024
7 Source: Natixis Investment Managers, as at 31/12/2024
Important information
Marketing communication. This material is provided for informational purposes only and should not be construed as investment advice. Views expressed in this article as of the date indicated are subject to change and there can be no assurance that developments will transpire as may be forecasted in this article. All investing involves risk, including the risk of loss. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.